MEV Wiki
Search…
MEV Wiki
Introduction
Resource List
Terms and Concepts
DeFi
Automated Market Maker
Arbitrage
Lending Platforms
Slippage
Liquidations
Priority Gas Auctions
Transaction Ordering
Attack Examples
Attempts to trick the bots
Solutions
Miscellaneous
Contributions
Powered By GitBook
Liquidations
What are liquidations in collaterized debt?
In Lending Platforms, if the collateral value decreases and the collateralization ratio falls below 150%, the collateral can be freed up for liquidation. Liquidators can then purchase the collateral at a discount to repay the debt.
Previous
Slippage
Next
Priority Gas Auctions
Last modified 8mo ago
Copy link